Make sure to inform and educate your chosen nominee of the term plan you have invested in and what to do with the sum assured. Another important factor to consider is temptation – the temptation to overspend. When a person gets access to too much money at once, the desire to overspend is quite natural. In her/his shopping haste, one may go overboard and spend on the things that may not be affordable for her/him in the long run. This can further lead to erosion of the claim amount corpus and can eventually result into financial hardships.